Minimum wage adjustments face scrutiny in Malaysia and Taiwan

In Malaysia, policymakers and labor groups are highlighting the wage gap facing middle-income earners. Following the increase of the minimum wage to RM1,700, concerns have been raised that employees earning approximately RM2,000 are experiencing stagnant wages as the gap between their income and the minimum wage narrows. Tengku Zafrul Aziz, a senior political advisor to the Prime Minister, noted that the 2027 budget should address the needs of middle-income employees to ensure they share in economic growth. This aligns with World Bank data showing that real wage growth for middle-income groups in Malaysia has been slower than overall GDP growth between 2010 and 2024.

In Taiwan, the minimum wage is set to increase by 4.745% for 2027, bringing the monthly salary to NT$30,900. While the adjustment aims to maintain purchasing power, the Taiwan Labor Front has criticized government subsidies intended to help businesses cover these rising labor costs. The group argues that such subsidies may discourage companies from undergoing necessary digital and technical transformations, suggesting instead that public funds should be directed toward equipment upgrades and talent training rather than directly offsetting wage expenses.

Both regions face the challenge of balancing rising labor costs with business competitiveness and productivity.